Urban Company IPO opens today: Should you subscribe to it?
Urban Company is selling its shares in the price band of Rs 98-103 apiece, which could be applied for a minimum of 145 shares and its multiples to raise Rs 1,900 crore between September 10-12.
- Sep 10, 2025,
- Updated Sep 10, 2025 9:41 AM IST
The initial public offering (IPO) of Urban Company kicks-off today, that is on Wednesday, September 10. The new-age internet-based marketplace shall be offering its shares in the range of Rs 98-103 apiece. Investors can apply for a minimum of 145 equity shares and its multiples thereafter. The issue shall close for bidding on Friday, September 12.
Urban Company is looking to raise a total of Rs 1,900 crore via its IPO, which includes a fresh share sale of Rs 472 crore and offer-for-sale (OFS) of worth Rs 1,428 crore. The net proceeds from the issue shall be utilized towards expenditure for new technology development and cloud infrastructure, expenditure for lease payments for the offices, marketing activities and general corporate purposes.
Incorporated in December 2014, Gurugram-based Urban Company is a technology-driven, full-stack online marketplace offering home and beauty services. It has presence across 51 cities across India, United Arab Emirates and Singapore, excluding cities served by the company's Kingdom of Saudi Arabia joint venture, as of June 30, 2025.
Urban Company raised a total of Rs 853.87 crore via anchor book as it allocated 8,29,00,485 shares at Rs 103 per share. Marquee global investors like Citigroup Global, Goldman Sachs, Government of Singapore, Ashoka Whiteoak, Government Pension Fund, Nomura, Amundi Funds, Florida Retirement System, Steadview Capital and Steinberg India participated in the anchor book.
For the financial year ended on March 31, 2025, Urban Company reported a net profit of Rs 239.77 crore with a revenue of Rs 1,260.68 crore. The company clocked a net loss of Rs 92.77 crore with a revenue of Rs 927.99 crore for the year 2023-24. It was commanding a grey market premium of Rs 35-37, suggesting a listing pop of 35 per cent for the investors.
Urban Company has reserved shares worth Rs 2.5 crore for its eligible employee, who will get a discount of Rs 9 per share. Of the net offer, 75 per cent shares will be reserved for QIB, while non-institutional investors will get 15 per cent of allocation. Retail investors will have only 10 per cent of the allocation in this IPO.
Kotak Mahindra Capital Company, JM Financial, Morgan Stanley India Company and Goldman Sachs (India) Securities are the book running lead managers for Urban Company IPO, while MUFG Intime India is the registrar. Shares of the company shall be listed on both BSE and NSE on September 17, Wednesday. Here's what a host of brokerage firms said about the IPO of Urban Company:
ICICIDirect Rating: Neutral Urban Company is a unique home service providing platform, which has a scope scaling up fast considering the unorganised and underpenetrated nature of the market. Optimum utilisation of its core employee strength will lead to better operating leverage, aiding profitability and cash flows to consistently improve in the long run, said ICICIDirect.
"At current equity the IPO is valued at 11.4 times FY25 EV/Sales (12.1 times EV/Sales based on Equity dilution post ESOPs) at the upper end of price band, which is largely in-line with other new age platform companies. We assign 'neutral' rating on Urban Company," it added.
KR Choksey Finserv Rating: Subscribe Urban Company has serviced 14.6 million customers till date, with 17.3 per cent CAGR growth in annual transacting users and a growth of 4.6 per cent CAGR in average spend per transacting user Its revenue has grown at a healthy pace of 34.1 per cent CAGR over FY23-25. Its Ebitda margin has improved from, led by its strict cost control initiatives, said KR Choksey Finserv.
"Moreover, we have compared the company's financial performance with other service companies (not directly comparable) and believe its issue to be fairly priced. We believe the company is well-positioned to capitalize on the growth driven by expanding consumer segments and shifting preferences towards higher spends on experiences," it added with a 'subscribe' rating.
Canara Bank Securities Rating: Subscribe Urban Company has demonstrated a compelling transformation from a cash-intensive startup to a profitable, cash-flow positive enterprise, underpinned by strong unit economics and operational scalability. Its business model is reinforced by high consumer repeat rates, a robust network of trained professionals, and powerful micro-market network effects, said Canara Bank Securities.
"Its growth strategy is anchored in its India Consumer Services segment, with prudent international expansion and product diversification enhancing long-term potential. Management’s approach reflects a disciplined balance between aggressive growth and sustainable execution, supported by sound governance practices," said the brokerage with a 'subscribe' rating.
Lakshmishree Investment & Securities Rating: Subscribe with caution The valuation assumes the company will sustain its high growth and continue to expand its margins. This leaves little room for a near-term re-rating, said Lakshmishree Investment. "For this reason, we recommend that risk-tolerant investors seeking exposure to the rapidly growing home services sector 'subscribe with risk' to the Urban Company, but only with a long-term period," it said.
Anand Rathi Shares & Stock Brokers Rating: Subscribe for long-term Urban Company benefits from strong network effects, as consumers and service professionals mutually strengthen platform growth. The company improves service quality through in-house training, tools, and defined standards, while its technology platform ensures smooth fulfilment, customer acquisition, and professional empowerment, said Anand Rathi.
"A trusted and established brand further reinforces its market position and long-term consumer loyalty along with scale and technological capabilities have helped us enhance profitability. It is valuing at P/E of 65.7 times to its FY25 earnings with P/S of 12.9 times and market cap of Rs 14,789.5 crore. We believe that the IPO is fully priced and recommend a 'subscribe for long term' tag," it said.
Ventura Securities Rating: Subscribe Urban Company has demonstrated growth in its annual transacting consumers, reaching 7.02 million as of June 2025, and increasing revenue from operations to Rs 367.26 in Q1FY26 from Rs 280.85. crore in Q1 FY25. While historically operating at a net loss, the company achieved a restated profit of Rs 6.94 crore in the same period, said Ventura Securities.
"Its ability to innovate products and services, from AI-powered diagnostics to smart water purifiers and electronic door locks, along with a professional, promoter-led management team, further strengthens its competitive positioning. However, these strengths are accompanied by notable risks," it added with a 'subscribe' risk.
Arihant Capital Market Rating: Subscribe for listing gain Urban Company looks set to grow steadily as more people turn to trusted, convenient home services. Its hyper local approach, strong tech platform, and focus on training professionals give it an edge, while new categories and affordable options are likely to keep customers coming back and spending more, said Arihant Capital.
"With rising demand for organized services in urban India and abroad, the company has a long runway for expansion. At the upper band of Rs 103, the issue is valued at Price/Sales of 12.92x. We are recommending a 'subscribe for listing gains' rating for this issue, it said.
SBI Securities Rating: Subscribe for long-term Urban Company provides a range of household services, catering to requirements of urban consumers. It has a large addressable market currently being catered to by the unorganized industry. Net Transaction Value (NTV)/revenue for the company has grown at a CAGR of 25.5%/34.1% over FY23-25, said SBI Securities.
"Profitability is on an improving trend and is expected to breakeven at the EBITDA level in FY26E. At the upper band of the issue price, Urban Company is valued at 12.9 times P/S on post issue capital. We recommend subscribing to the issue with a long-term investment horizon," it said.
BP Equities Rating: Subscribe Urban Company has transitioned towards profitability, supported by operational leverage and scale economics in FY25. Given the company’s leadership position, strong business model, improving financials, and long growth runway, the IPO offers attractive medium to long-term potential, said BP Equities. "We, therefore, assign the issue a 'subscribe' recommendation," it said.
Sushil Finance Rating: Subscribe Urban Company gives investors an opportunity to invest in India’s dynamic gig economy, said Sushil Finance. "Looking at all the factors, risks, opportunities and valuation and also the advantage of first mover, investors can invest with long term horizon," it said.
The initial public offering (IPO) of Urban Company kicks-off today, that is on Wednesday, September 10. The new-age internet-based marketplace shall be offering its shares in the range of Rs 98-103 apiece. Investors can apply for a minimum of 145 equity shares and its multiples thereafter. The issue shall close for bidding on Friday, September 12.
Urban Company is looking to raise a total of Rs 1,900 crore via its IPO, which includes a fresh share sale of Rs 472 crore and offer-for-sale (OFS) of worth Rs 1,428 crore. The net proceeds from the issue shall be utilized towards expenditure for new technology development and cloud infrastructure, expenditure for lease payments for the offices, marketing activities and general corporate purposes.
Incorporated in December 2014, Gurugram-based Urban Company is a technology-driven, full-stack online marketplace offering home and beauty services. It has presence across 51 cities across India, United Arab Emirates and Singapore, excluding cities served by the company's Kingdom of Saudi Arabia joint venture, as of June 30, 2025.
Urban Company raised a total of Rs 853.87 crore via anchor book as it allocated 8,29,00,485 shares at Rs 103 per share. Marquee global investors like Citigroup Global, Goldman Sachs, Government of Singapore, Ashoka Whiteoak, Government Pension Fund, Nomura, Amundi Funds, Florida Retirement System, Steadview Capital and Steinberg India participated in the anchor book.
For the financial year ended on March 31, 2025, Urban Company reported a net profit of Rs 239.77 crore with a revenue of Rs 1,260.68 crore. The company clocked a net loss of Rs 92.77 crore with a revenue of Rs 927.99 crore for the year 2023-24. It was commanding a grey market premium of Rs 35-37, suggesting a listing pop of 35 per cent for the investors.
Urban Company has reserved shares worth Rs 2.5 crore for its eligible employee, who will get a discount of Rs 9 per share. Of the net offer, 75 per cent shares will be reserved for QIB, while non-institutional investors will get 15 per cent of allocation. Retail investors will have only 10 per cent of the allocation in this IPO.
Kotak Mahindra Capital Company, JM Financial, Morgan Stanley India Company and Goldman Sachs (India) Securities are the book running lead managers for Urban Company IPO, while MUFG Intime India is the registrar. Shares of the company shall be listed on both BSE and NSE on September 17, Wednesday. Here's what a host of brokerage firms said about the IPO of Urban Company:
ICICIDirect Rating: Neutral Urban Company is a unique home service providing platform, which has a scope scaling up fast considering the unorganised and underpenetrated nature of the market. Optimum utilisation of its core employee strength will lead to better operating leverage, aiding profitability and cash flows to consistently improve in the long run, said ICICIDirect.
"At current equity the IPO is valued at 11.4 times FY25 EV/Sales (12.1 times EV/Sales based on Equity dilution post ESOPs) at the upper end of price band, which is largely in-line with other new age platform companies. We assign 'neutral' rating on Urban Company," it added.
KR Choksey Finserv Rating: Subscribe Urban Company has serviced 14.6 million customers till date, with 17.3 per cent CAGR growth in annual transacting users and a growth of 4.6 per cent CAGR in average spend per transacting user Its revenue has grown at a healthy pace of 34.1 per cent CAGR over FY23-25. Its Ebitda margin has improved from, led by its strict cost control initiatives, said KR Choksey Finserv.
"Moreover, we have compared the company's financial performance with other service companies (not directly comparable) and believe its issue to be fairly priced. We believe the company is well-positioned to capitalize on the growth driven by expanding consumer segments and shifting preferences towards higher spends on experiences," it added with a 'subscribe' rating.
Canara Bank Securities Rating: Subscribe Urban Company has demonstrated a compelling transformation from a cash-intensive startup to a profitable, cash-flow positive enterprise, underpinned by strong unit economics and operational scalability. Its business model is reinforced by high consumer repeat rates, a robust network of trained professionals, and powerful micro-market network effects, said Canara Bank Securities.
"Its growth strategy is anchored in its India Consumer Services segment, with prudent international expansion and product diversification enhancing long-term potential. Management’s approach reflects a disciplined balance between aggressive growth and sustainable execution, supported by sound governance practices," said the brokerage with a 'subscribe' rating.
Lakshmishree Investment & Securities Rating: Subscribe with caution The valuation assumes the company will sustain its high growth and continue to expand its margins. This leaves little room for a near-term re-rating, said Lakshmishree Investment. "For this reason, we recommend that risk-tolerant investors seeking exposure to the rapidly growing home services sector 'subscribe with risk' to the Urban Company, but only with a long-term period," it said.
Anand Rathi Shares & Stock Brokers Rating: Subscribe for long-term Urban Company benefits from strong network effects, as consumers and service professionals mutually strengthen platform growth. The company improves service quality through in-house training, tools, and defined standards, while its technology platform ensures smooth fulfilment, customer acquisition, and professional empowerment, said Anand Rathi.
"A trusted and established brand further reinforces its market position and long-term consumer loyalty along with scale and technological capabilities have helped us enhance profitability. It is valuing at P/E of 65.7 times to its FY25 earnings with P/S of 12.9 times and market cap of Rs 14,789.5 crore. We believe that the IPO is fully priced and recommend a 'subscribe for long term' tag," it said.
Ventura Securities Rating: Subscribe Urban Company has demonstrated growth in its annual transacting consumers, reaching 7.02 million as of June 2025, and increasing revenue from operations to Rs 367.26 in Q1FY26 from Rs 280.85. crore in Q1 FY25. While historically operating at a net loss, the company achieved a restated profit of Rs 6.94 crore in the same period, said Ventura Securities.
"Its ability to innovate products and services, from AI-powered diagnostics to smart water purifiers and electronic door locks, along with a professional, promoter-led management team, further strengthens its competitive positioning. However, these strengths are accompanied by notable risks," it added with a 'subscribe' risk.
Arihant Capital Market Rating: Subscribe for listing gain Urban Company looks set to grow steadily as more people turn to trusted, convenient home services. Its hyper local approach, strong tech platform, and focus on training professionals give it an edge, while new categories and affordable options are likely to keep customers coming back and spending more, said Arihant Capital.
"With rising demand for organized services in urban India and abroad, the company has a long runway for expansion. At the upper band of Rs 103, the issue is valued at Price/Sales of 12.92x. We are recommending a 'subscribe for listing gains' rating for this issue, it said.
SBI Securities Rating: Subscribe for long-term Urban Company provides a range of household services, catering to requirements of urban consumers. It has a large addressable market currently being catered to by the unorganized industry. Net Transaction Value (NTV)/revenue for the company has grown at a CAGR of 25.5%/34.1% over FY23-25, said SBI Securities.
"Profitability is on an improving trend and is expected to breakeven at the EBITDA level in FY26E. At the upper band of the issue price, Urban Company is valued at 12.9 times P/S on post issue capital. We recommend subscribing to the issue with a long-term investment horizon," it said.
BP Equities Rating: Subscribe Urban Company has transitioned towards profitability, supported by operational leverage and scale economics in FY25. Given the company’s leadership position, strong business model, improving financials, and long growth runway, the IPO offers attractive medium to long-term potential, said BP Equities. "We, therefore, assign the issue a 'subscribe' recommendation," it said.
Sushil Finance Rating: Subscribe Urban Company gives investors an opportunity to invest in India’s dynamic gig economy, said Sushil Finance. "Looking at all the factors, risks, opportunities and valuation and also the advantage of first mover, investors can invest with long term horizon," it said.